The move is part of the board of directors' succession plan starting with Gennette's election as president of the company in 2014. After the effective date of the transition, Lundgren will keep his role as the executive chairman and will work with Gennette as president and CEO.

Jeff Gennette is also joining the Macy's board of directors, effective with today's announcement. He will be responsible for all additional management during the transition period, including stores organization oversight. With him on board, the total number of directors is increased to 14.

Lundgren and Gennette will always cooperate closely on improving business trends and setting stages for change.

“Jeff Gennette is an extraordinary leader who has distinguished himself as a skilled merchant and retail operator," said Lundgren. "He has worked closely with me over the past two years as president of Macy’s, Inc. in a first step in this succession process, and we are closely aligned on creating a compelling and sustainable path forward. In making this announcement today, the board and I want to communicate proactively the timing of the CEO transition as we act to seamlessly implement our future plans. Jeff and our team are well equipped to continue the transformation of our company for the next generation of customers and associates."